markets news: Can Sensex hit a new peak of 65,000 by this December? What experts say

Having rallied over 4,200 points in the last one month, Sensex may not just race past its previous record high at 62,245.43 but also scale Mt 65K by as early as December this year, says Sunil Damania, Chief Investment Officer, MarketsMojo.

Stating that India Inc’s earnings for the June quarter have also been reasonably admirable as the topline grew QoQ, he said, “We believe there is great merit in India Inc’s growth story, and in that regard, we opine that Sensex could touch 65000 by Dec 2022”.

Domestic brokerage ICICIdirect says the cooling off commodity prices provide comfort amid marginal decline in earnings post Q1 and has revised its Sensex target to 64,700 in the next 12 months. Using FY24E EPS, it said Nifty can hit 19,425.

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“We remain constructive on the overall markets and believe the present market offers an attractive risk-reward play to build a long term portfolio of quality companies, which have lean balance sheets, are capital efficient in nature and have growth longevity,” it said.

Damania said market sentiments have rekindled since July because of substantial GST collections in addition to strong direct tax collections. “These factors indicate healthy economic growth, despite global economies struggling. Also, the rupee has begun moving in a very narrow range after touching Rs 80. Taking wind of these positive factors, FIIs returned strongly in July and August and are likely to continue investing in India’s growth story,” he said.

The June quarter earnings season saw India Inc reporting low single digit QoQ growth in topline and double digit bottomline decline with pressure on gross margins.

Dr. V K Vijayakumar, Chief Investment Strategist at , is of the opinion that the elevated valuations do not justify further run up in the market. “Some profit booking and diversion of money to fixed income may be considered as a short-term strategy. Buy on dips can be considered in high quality financials, leading names in capital goods and autos,” he said.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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